Currency markets never sleep and several trillions dollars are traded everyday, making currencies the world's biggest and most exciting investment market.
In recent years, mechanical currency trading systems, using technical analysis to predict trend movements have become increasingly popular as a way of locking into, and profiting from the longer term currency trends.
Making Money from the Longer Term Trends
Currency trading systems are ideal for making profits from longer-term currency trends, and they occur in all currencies.
The longer-term trends in FOREX markets reflect the health of the economy.
As economic cycles are relatively long and take years, so do the currency trends that reflect these cycles.
A good currency trading system can enable traders to lock into, and make profits from these longer-term trends.
When choosing currencies to trade, it is important to have good long-term trends, but just as important is liquidity, which enables traders to lock in profits and exit losing trades quickly.
Currencies that offer good trends and liquidity include:
· The US Dollar
· Swiss Franc
· Euro
· Japanese Yen
· British Pound.
Currency trading systems remove emotions from trading, which is the major reason the majority of traders end up losing.
Removing the Emotion from Trading with Systems
There has been plenty of material written about using currency trading systems, and the works below provides informative reading for anyone thinking of using a currency trading system.
Traders should try to read the following authors:
Edwin Lefeurve, Jake Bernstein, Larry Williams, Ken Roberts, Van Tharpe and Jack Shwager whose books "Market Wizards" and "The New Market Wizards" interview some of the most successful traders of all time, including the "turtles". The Turtles are group of traders who had no prior trading experience, but went on to earn hundreds of millions of dollars, using very simple mechanical trading systems.
Currency Trading Systems that Make Money
The developments in recent years in computer software, the growth of the Internet, and online trading, has seen currency trading systems become more popular than ever.
Software Packages such as Tradestation, Supercharts, Omni trader, and many more, allow traders to back test systems, using a variety of technical indicators that include:
· Stochastics
· Bollinger bands
· RSI
· moving averages
· ADX
And many more.
The currency trading system picked can then be analyised, to see how it would have performed in the markets with commissions and slippage deducted.
Traders, who don't want to develop a currency trading system, can buy systems off the shelf from vendors.
How do you Choose a Successful Currency Trading System?
If you are buying a currency trading system, there are several things to consider before parting with your hard earned cash:
1. Are you interested in being a day trader, or a trader looking for longer-term trends? You need to pick a system that you're comfortable with and this is mostly down to personal preference. Some traders like the excitement of day trading others prefer a longer-term approach.
2. Do you want to have any input into the system, or do you want it to be totally mechanical?
3. Do you want to trade just one currency, or a basket of currencies? Using a currency trading system that trades just one currency can be more profitable but keep in mind, the converse is true, i.e losses and drawdowns can be larger.
4. When choosing a currency trading system you need to have confidence to trade with it, and follow the system through losing periods. To do this you should know the logic the system is based upon. If you understand the system and its logic, you will derive confidence and be more likely to follow it - in contrast to one where the logic is not revealed.
5. What are the average profits you can expect in relation to drawdowns? All currency trading systems will have periods of drawdown and losses. Generally the larger the profits the bigger the drawdowns tend to be over time - so pick a system that reflects your investment aims and risk tolerance.
6. When you are buying a currency trading system, check out the system seller's experience, track record, customer support, - and whether they have a real-time track record, or a hypothetical one.
A real time track records means the system has performed in the market and made money, i.e it's proven. Trading systems that simply rely on hypothetical track records mean they have been back tested, - and with the benefit of hindsight we can all make money!
While hypothetical track records should be treated with a degree of caution, you can find out a lot about whether the system is likely to make money, by knowing the logic the system is based on.
When considering a hypothetical track record, look for one where the logic is revealed and not a "black box" system where you have no idea how to system works.
In conclusion, you can make your own currency trading system, or you can buy one from a vendor - when choosing one from a vendor make sure you do your homework, and remember - if it looks too good to be true, it probably is!
Currency trading systems can, and do make money, and the effort you put into finding the system that suits your personality, risk tolerance, and profit objectives, will be time well spent.
We have lots more currency trading articles to help you sharpen your trading skills, on our web site. New! Free Currency Trader CD available through our web site! You can grab this valuable CD, which contains 9 critical reports on how to improve your trading. Everything you need to trade successfully is enclosed, including tips strategies and trading systems.
To claim your free trading CD, visit our web site now ==>http://www.tradercurrencies.com
Article Source: http://EzineArticles.com/?expert=Stephen_Todd
Sunday, April 18, 2010
Sunday, April 11, 2010
Discount Online Stock Trading
Discount online stock trading is service offered by online stockbrokers. They provide general information regarding trading and are also less personalized than a full-service stockbroker. Traders prefer them, as their charges are considerably lower than that of a full service broker. Deep discount online stock trading brokers offer minimum service and only trade stocks and options for a flat fee.
In order to start discount stock trading online, investors have to open an account with the discount broker. Most discount brokers require a fixed initial deposit for opening a trading account. This can be anything from five hundred to two thousand dollars. After opening the account, deposits of any amount can be made. Deep discount brokers accept the orders and execute them to the letter, without offering any sort of advice. Almost all discount stockbrokers have their websites, through which traders can access and manage their accounts by themselves. Traders, who have a good idea of the market and like to manage their trading accounts by themselves, without any interference of the broker, prefer this option.
Discount online stock trading allows the traders to buy or sell stocks any time of the day. With online discount brokers, there is no need to personally interact with the broker. However, they do have a help line that can be reached, in case of any query. Online trading requires thorough research by the trader, to find a good broker. Traders must also enquire with fellow traders about their experiences, with different online stockbrokers. It is necessary to make comparisons, to find the discount broker that provides the best deal. The commission charged by the broker must also be understood perfectly, for the actual dollar cost per trade. The type and quantity of trade must also be considered, before selecting an online discount broker.
Online Stock Trading provides detailed information on Online Stock Trading, Online Stock Trading Companies, Free Online Stock Trading, Online Stock Trading Games and more. Online Stock Trading is affiliated with Futures Trading Online Analysis.
Article Source: http://EzineArticles.com/?expert=Josh_Riverside
In order to start discount stock trading online, investors have to open an account with the discount broker. Most discount brokers require a fixed initial deposit for opening a trading account. This can be anything from five hundred to two thousand dollars. After opening the account, deposits of any amount can be made. Deep discount brokers accept the orders and execute them to the letter, without offering any sort of advice. Almost all discount stockbrokers have their websites, through which traders can access and manage their accounts by themselves. Traders, who have a good idea of the market and like to manage their trading accounts by themselves, without any interference of the broker, prefer this option.
Discount online stock trading allows the traders to buy or sell stocks any time of the day. With online discount brokers, there is no need to personally interact with the broker. However, they do have a help line that can be reached, in case of any query. Online trading requires thorough research by the trader, to find a good broker. Traders must also enquire with fellow traders about their experiences, with different online stockbrokers. It is necessary to make comparisons, to find the discount broker that provides the best deal. The commission charged by the broker must also be understood perfectly, for the actual dollar cost per trade. The type and quantity of trade must also be considered, before selecting an online discount broker.
Online Stock Trading provides detailed information on Online Stock Trading, Online Stock Trading Companies, Free Online Stock Trading, Online Stock Trading Games and more. Online Stock Trading is affiliated with Futures Trading Online Analysis.
Article Source: http://EzineArticles.com/?expert=Josh_Riverside
Stock Trading Secrets Revealed
The best way to trade stocks online.
These days more than ever folks are needing to be assured that their investments are safe. The most important beyond that is to know that you can consistently be making a profit on your investments through stocks.
The best kept secret is the fact that you can make a great deal of profit online through the use of stock trading software. The software is created by programmers to watch the market closely and alert you when is the best time to buy certain stocks and when to sell them for the maximum profit.
Till recently folks had to depend on brokers to buy and sell stocks for you online and then they got a commission off of the profits that they made for you.
This would mean that you would have to make a lot more profits to make up for the amount paid toward brokers and to really make a profit that would be able to benefit you.
The problem is that too many brokers are being found to be less that honest and many are placing peoples lively hoods in jeopardy.
You can easily buy software online and download it and be up and running buying and selling stocks online within minutes. You can do all of this with out having prior knowledge of the stock market or having to study trends yourself for days before you buy stock in a certain company.
The best thing is that once you have the software and get an account opened online. You don't even have to have your computer on to be turning a profit.
Try Fap Turbo Free for 60 days you can even use a demo account to see profits without actually using your own money. Then when you feel confident you can use really money as little as $50.
click here http://www.sunnyjames.com/fabturbo3.html
Article Source: http://EzineArticles.com/?expert=Sunny_James
These days more than ever folks are needing to be assured that their investments are safe. The most important beyond that is to know that you can consistently be making a profit on your investments through stocks.
The best kept secret is the fact that you can make a great deal of profit online through the use of stock trading software. The software is created by programmers to watch the market closely and alert you when is the best time to buy certain stocks and when to sell them for the maximum profit.
Till recently folks had to depend on brokers to buy and sell stocks for you online and then they got a commission off of the profits that they made for you.
This would mean that you would have to make a lot more profits to make up for the amount paid toward brokers and to really make a profit that would be able to benefit you.
The problem is that too many brokers are being found to be less that honest and many are placing peoples lively hoods in jeopardy.
You can easily buy software online and download it and be up and running buying and selling stocks online within minutes. You can do all of this with out having prior knowledge of the stock market or having to study trends yourself for days before you buy stock in a certain company.
The best thing is that once you have the software and get an account opened online. You don't even have to have your computer on to be turning a profit.
Try Fap Turbo Free for 60 days you can even use a demo account to see profits without actually using your own money. Then when you feel confident you can use really money as little as $50.
click here http://www.sunnyjames.com/fabturbo3.html
Article Source: http://EzineArticles.com/?expert=Sunny_James
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